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You're getting there. A couple of suggestions:
1. Lower the camera so that instead of looking slightly down, it's looking straight or slightly up at you. That way you can eliminate the floor in the shot, and it'll look a bit more professional.
2. Encode to mpeg4 and not mpeg1 (which is about as crappy as it gets). At that video size, a 768kbps mpeg4 encode should look REALLY nice.
3. Fade in from black and fade out from black. Makes things simpler if you start to do more than one video segment at a time.
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